Irish consumers do not plan to go wild on their holiday spending in 2021, a new survey from KBC Bank Ireland suggests.
One in four plan to spend the same as in 2020 and while slightly more plan to spend more than to cut back (19% compared to 12%), the average outlay overall is likely to be broadly unchanged from last year.
KBC said this points to a “solid” rather than “spectacular” season for the domestic tourism industry overall this year.
The survey shows that 54% of consumers here plan to have a summer holiday in 2021 and a further 12% have yet to make up their minds.
But 19% of consumers say they are unable to afford a holiday this year.
KBC said that although this figure may appear high, it seems broadly consistent with the 22.4% Covid-adjusted unemployment rate for May in capturing a cohort facing significant financial uncertainty at present.
Another 15% say they will not go on holiday for other reasons with the vast majority of these citing Covid-related concerns.
The responses were given to a supplementary question asked in the KBC Bank Ireland’s May consumer sentiment survey.
As the survey showed a rise in consumer confidence to a 23 month high driven in large part by “opening-up” optimism, it might be expected that consumers would be notably keen on enjoying a summer break.
“However, the responses to the survey as a whole and to this special question suggest that a significant element of caution persists in general, and a substantial number of Irish consumers remain financially constrained or facing uncertain futures to the point where holidays are out of reach,” KBC Bank Ireland said.